State of North Carolina two-year state plan for Title I of the Workforce Investment Act and the Wagner-Peyser Act

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Appendix 1 includes a List of Acronyms and Abbreviations.
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See text below.
The North Carolina Commission on Workforce Development (State Board), through coordination
by its staff, assumes the lead role in the development of the State Plan. Guidance provided by
the Governor’s policy advisors is incorporated, as well as input from a number of sources,
including the following:
• State Board members,
• Major State agency stakeholders,
• North Carolina Economic Development Association,
• North Carolina Economic Development Board,
• Chambers of Commerce,
• Members of the Business Community, and
• Members and staff of Local Area Workforce Development Boards.
Input for developing and finalizing the State Plan includes the following:
1. Electronic Survey – for the original submission of the five-year planning cycle (July 1,
2005-June 30, 2010, an electronic survey was distributed to the aforementioned
stakeholders. The survey included four questions that asked for feedback on the most
important workforce issues for North Carolina and ways to enhance the One-Stop
System (known in North Carolina as the JobLink Career Center System or JobLink).
Stakeholders were asked to forward the survey to others they deemed appropriate. A
compilation of the survey results was reviewed and considered.
2. Individual Meetings - members of the Commission Executive Committee and its
Executive Director held an open forum with those in the workforce development
community and conducted one-on-one meetings with major State agency leaders for the
purpose of information-gathering and honest discussion. State agencies that participated
in the individual meetings included the Employment Security Commission (ESC) of North
Carolina, the North Carolina Community College System (NCCCS), the North Carolina
Department of Health and Human Services (DHHS), and the North Carolina Department
of Commerce (DOC).
3. Web Site Review - the final draft of the State Plan was posted on the State Board’s Web
site for public comment, and copies were distributed to the Governor and State Board
members for review. Additionally, electronic notification was sent to the workforce
development community at large, seeking comments and recommendations.
Recommendations and suggestions from these methodologies, collaborative efforts in
development, and review by key State agency stakeholders have combined to shape North
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Carolina’s State Plan. The third and fourth years’ modification has incorporated additional
insight from the North Carolina Commission on Workforce Development’s ‘State of the North
Carolina Workforce’ Report (January 2007). Posting of the modification and electronic
notification were widely distributed. The modification development timeline was created in
February 2007, broadly shared, and followed throughout the collaborative plan modification
process. The public comment period and subsequent input were used.
In his second term of office, Governor Michael Easley has continued to move North Carolina
toward his vision for One North Carolina. The One North Carolina Agenda is a set of goals that
builds the State’s educational, economic, and social support infrastructure … “where every
citizen has a chance in the winner’s circle of our economy” (Governor Easley).
Key elements of the One North Carolina Agenda include the following:
• Promote economic prosperity with an aggressive development strategy designed to
bring high-skilled jobs, a high-tech infrastructure, and a quality transportation system to
every region of North Carolina.
• Build a system of education that gives every child every opportunity to succeed,
regardless of geographic location or economic condition.
• Implement the More at Four pre-kindergarten program to help at-risk four-year olds
start school healthy and ready to learn.
• Recruit and retain the highest quality educators.
• Develop a workforce prepared to meet the demands of a global economy by expanding
life-long learning opportunities.
In 2006 there were nearly 100,000 new jobs created in North Carolina for a 2.5 percent growth
rate. The unemployment rate for January 2007 was 4.6 percent, the lowest rate since April
2006. North Carolinians understand that if our economy is to continue to grow and compete
globally, we must have the best-educated workforce. The more our children learn, the more
qualified they are for high-skilled jobs for the 21st century.
Governor Easley’s vision for North Carolina’s workforce development system provides a
continuum of employment, education, and training services for citizens and business that
reflects community needs. As resources decrease and needs increase, the workforce
development system is expected to provide services in a seamless, unified approach that is
effective and efficient. The workforce development system must offer “end to end” education,
employment, and training solutions that begin with excellent public schools that impact business
recruitment and retention, and that offer continuous learning and skill building opportunities for
emerging and incumbent workers.
North Carolina faces significant challenges as it seeks to create quality jobs for all North
Carolinians. While the economy is steadily improving, the State is still challenged by the effects
of a four-year, manufacturing-led downturn that continues to be influenced by global economic
forces. During this period, the State lost over 160,000 manufacturing jobs to business closings
and permanent layoffs, mostly in the textile and furniture industries. The economy has replaced
many of those lost jobs, but often at lower wages or with temporary work. In January 2007, the
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North Carolina Commission on Workforce Development (the State Board) produced a report
titled the “State of the North Carolina Workforce” (Appendix 18). This report is an in-depth
quantitative analysis of the current and projected labor market supply and demand with a goal of
identifying our challenges and opportunities for completing a successful economic transition.
The report identified key trends that will influence industries demand for labor and the supply of
workers available to meet the demand within the period of 2007-2017. These key trends
included:
• North Carolina’s traditional “middle jobs”—those that paid a family-sustaining wage and
required minimal formal education or training—are disappearing as part of this transition.
• New job creation is concentrated in certain fast-growing metropolitan areas.
• Many areas of North Carolina are not prospering from the economic transformation.
• The future prosperity of all North Carolinians depends on achieving higher educational
attainment levels for all citizens.
• Impending baby-boom retirements will exacerbate an emerging skills gap among
experienced, skilled workers.
• High-skill in-migrants will help fill part, but not all, of this skills gap.
• Low-skill in-migrants present both opportunities and challenges in meeting the state’s
workforce needs.
Because North Carolina is widely acknowledged to have an exceptional business climate, the
State is aggressively investing in getting its economy growing through a transition from what
was a predominately labor-intensive manufacturing base to one which is knowledge–based,
characterized by a highly skilled, value-added workforce. Education levels must increase across
the board to meet the growing demand for higher skilled workers over the next decade.
In the near term, North Carolina is stimulating its economy by building on its transportation and
education infrastructure. Governor Easley’s plan is to enhance roads and bridges so that
citizens can get from where they choose to live to good jobs, and so that business and industry
will have efficient transportation outlets to move products to market. The State will continue to
invest in its universities and community colleges to support the demand for training and
retraining its workforce, including retraining for workers who lost their jobs during the economic
downturn, a downturn permanently impacted by globalization. The State will continue to build on
its investments in growth industries like biotechnology, and expects to excel in this area, in
research, development, and bioprocessing. North Carolina will also target companies that apply
new and innovative technology to remain competitive in traditional industries, such as textiles
and furniture.
In the long term, North Carolina will continue to invest in education priorities as identified in
Governor Easley’s One North Carolina Agenda. Education and training will be key success
factors as North Carolina moves toward a knowledge-driven economy. The quality of the State’s
educational and training system and the ability to continuously re-train the workforce will
maintain the State’s attractiveness to companies looking to move to or expand in North
Carolina. It will require strong public/private partnerships and collaborations, and a unified public
workforce development system that can respond quickly to workforce and economic needs in
local communities through service delivery and resource leveraging.
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See text below
North Carolina faces an unprecedented number of workforce and economic challenges
that test government, business, and community leaders at the State and local levels. The
economic downturn, market globalization, and worker dislocations have adversely
impacted North Carolina. The State Economic Development Board’s (EDB) strategic plan
recognizes that the transition of the State’s economy from labor-intensive to knowledge-based
(workplace environments) is directly linked to the skills of the workforce. The State
will experience a fluid and complex business environment – an environment where all
workers will be needed with skills that promote increased productivity. The EDB, working
closely with the Governor’s office and the Commission on Workforce Development,
appointed a subcommittee on Workforce Development Governance and Accountability
(Subcommittee). The EDB charged the Subcommittee with examining the state level
workforce development structure of program governance, management, and
accountability, and with making recommendations on how this structure must function to
effectively meet current and future economic and workforce needs.
The Subcommittee found that the JobLink Career Center system (North Carolina’s One-
Stop service delivery network), including state and local level partnerships, has invested
significant time and resources in growing this service delivery model in North Carolina. It
found agreement among public and private stakeholders that this system is the right
approach for delivering market-driven services to workers and employers. However, it
determined that the JobLink system has not reached the level of resource and service
integration needed by workers and businesses at the local level.
The Subcommittee also recognized significant budget and service capacity constraints
within key workforce development agencies at the state and local levels, and recognizes
that current and future needs will demand flexibility, easy service access, and enhanced
services to new and existing business and industry. The Subcommittee identified the
following needs in the state level workforce development structure:
• Enhancing methods for resource leveraging to counter budget and service delivery
capacity issues;
• A common vision that guides policy, program design, and fund utilization; and
• Clear lines of accountability and communication that support effective service
delivery to system customers.
The EDB Subcommittee recommended the establishment of a state level workforce
development management alliance (Alliance). This Alliance would be charged with
implementing plans, policies, and strategic initiatives that involve multiple agency
programs and resources. The Subcommittee also recommended that an individual,
designated and accountable to the Governor, and with a clearly defined role and line of
authority, chair this Alliance. Other Alliance membership would include the following:
• Chairman of the Employment Security Commission,
• President of the Community College System,
• Secretary of the Department of Commerce, and
• Secretary of the Department of Health and Human Services.
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The EDB and the Commission (State Board) endorsed this recommendation. In 2006, the
Governor established the Workforce Alliance (the Alliance) as recommended by the State
Board and the Economic Development Board. The Alliance is charged with the following
responsibilities:
• Planning, policy development, and funding across agency and program lines,
• Clarity in accountability and communication,
• Support and alignment of the work of the Commission and the State EDB,
• Enhanced service planning for response to business recruitment and expansion
and worker dislocations,
• Enhanced service integration and resource-sharing within the JobLink Career
Center system, and
• Identification of system capacity and staff development needs.
The Alliance is expected to work closely with the Commission to operationally put in place
the Governor’s vision for a workforce development system that responds to North
Carolina’s economic needs with a seamless system of services operating within a common
infrastructure at the state, regional, and local levels. This system is built around a common
vision for workforce and economic development, strong state and local governance
structures, a clear and accountable state level management structure, and the ability to
respond to worker and business needs with flexibility and creativity.
Governor Easley is committed to providing lifelong learning opportunities for the citizens of
North Carolina. The State recognizes the importance of quality public school education
beginning at early ages, and the importance of continued education and skills attainment
throughout one’s career. North Carolina will continue to leverage federal, state, local, and
private funding to support the need for current and future knowledge-based workers.
The State will continue to work closely with its business and industry partners to define and
understand their ever-changing needs regarding worker skills. North Carolina works closely with
business organizations like the North Carolina Chamber of Commerce, the North Carolina
Business Committee for Education (NCBCE), The North Carolina Rural Economic Development
Center, and the North Carolina Economic Development Association to ensure that their needs
are understood. The State will continue to appoint strong business representatives to the
Commission and the State EDB. Additionally, North Carolina will raise its expectations of private
sector-led local workforce development boards (WDB) to ensure that private sector
appointments reflect the industry makeup of the area, and that the local WDBs have sufficient
capacity to fulfill their roles and responsibilities.
Governor Easley continues to leverage resources to introduce training and education reforms
and opportunities and to build on existing programs that impact both the emerging and
incumbent workforce. Examples of these efforts include the following:
Early Childhood and Public School Initiatives
• The More at Four early childhood initiative is a state-funded effort to work with at risk
preschoolers to ensure their readiness for entry into K-12. Funding has been increased for
this initiative. Twenty Thousand four year olds are enrolled in the More at Four program
with an additional 10,000 to be enrolled by the end of 2007.
• The 21st Century Skill Center initiative, recently announced, is a public/private partnership
supported by NCBCE and other corporations and businesses, plus the Partnership for 21st
Century Skills. The project will focus on preparing students for high-skilled jobs in the new
economy. The Center will work with public school systems, community colleges, and
university educational institutions to redesign school curricula, update teacher-training
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programs, and provide improved assessments of student skills. Educators, administrators,
and the business community will work with the Center to identify the skills needed to ensure
that North Carolina continues to compete successfully in the global economy.
• The creates early college opportunities in high schools. High
school students take college courses at their high school and are able to earn Associate
Degrees with just one extra year of study. This not only saves families tuition payments but
also gets trained workers out in the labor market at a faster pace. The state plans to have
75 Learn and Earn high school projects by the end of 2009.
• The New Schools Project (NSP), launched in August 2003 by the Governor's Education
Cabinet and the Public School Forum, is a private/public partnership that focuses
leadership and financial resources on change in the State’s high schools. Backed by an
$11 million grant from the Bill and Melinda Gates Foundation, this project will award grants
and provide other support to create up to one hundred (100) new, small high schools
across the State over the next five years. The schools will serve as models for
academically rigorous curricula to prepare all students for work and college. The NSP will
also seek to engage key stakeholders in shaping consensus for change in the high schools
and action steps to get there.
Examples of initial projects include the following:
• Career Academies -To date, eight school districts (Newton-Conover, Scotland
County, Wake County, Winston-Salem/Forsyth County, Asheville City, Cumberland
County, Durham Public Schools, and Granville County) have been awarded grants to
develop career academies. Each of the grant recipients is committed to creating new
high schools and schools-within-existing-schools that focus on career preparation in
the health sciences. They will be developed with regional health care and higher
education partners.
• Middle and Early Colleges - Five districts (Buncombe, Catawba, Guilford, Durham
and Nash-Rocky Mount) have received grants to develop Middle and Early Colleges.
By bridging the divide between high school and college, Middle and Early Colleges
make higher education affordable, attractive, and more accessible. Such schools are
located on either community college or university campuses. Upon graduation,
students receive a high school diploma and either an Associate Degree or two years
of transferable college credits.
• High School Reform – To reform high schools and better prepare students for
college and the workforce, recent grants from the North Carolina New Schools Project
were awarded in three communities in northeast North Carolina, namely, Beaufort,
Camden, and Dare. The funds will be spent to create new, smaller high schools that
will offer focused learning and will help motivate students to make connections with
both their teachers and the world beyond high school. Grant recipients commit to
overall reform of their schools to change whatever is necessary to make the high
school experience relevant to post-secondary plans and the world beyond high school
for all of their students.
Incumbent Worker Training
• The Incumbent Workforce Development Training Program was designed and
implemented in 2003 to promote and support partnerships with the business community to
meet their worker training needs. Sponsored by the Commission on Workforce
Development and managed through a partnership between the North Carolina Department
of Commerce (DOC) and the 24 local Workforce Development Boards (WDBs), the
program has invested over $12 million since 2003 to provide over 420 businesses with
grants to train their workers. Continuation is planned for the 2007-2009 period.
• The New and Expanding Industry Training (NEIT) Program, part of the NCCCS,
provides customized training assistance in support of new, full-time production positions
created in North Carolina. This kind of customized training assistance enhances the growth
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potential of companies located in North Carolina while simultaneously preparing the State’s
workforce with skills that are essential to successful employment in emerging industries.
This nationally recognized customized training program is a proven economic development
asset for the State, and is closely aligned with the Incumbent Workforce Development
Training Program to ensure resource maximization and flexibility in providing enhanced
business services.
• The Focused Industrial Training (FIT) Program, part of the NCCCS, is a special training
program for North Carolina's traditional industries. Serving a customer base composed
primarily of manufacturing clients, FIT uses individual needs assessments and consultants
to design and implement targeted, customized training for organizations that need to
upgrade workers' skills because of technological or process advances. The program
focuses on skill requirements that change as technology changes.
• The Career Readiness Certificate Initiative (CRC) is a portable credential that promotes
career development and skill attainment for the individual, and confirms to employers that
the individual possesses the basic workplace skills of reading, applied math, and
information locating. This certificate is an especially useful economic development tool in
cities and counties where the academic achievement levels of the incumbent, dislocated, or
potential workforce are inhibitors to business development. As a result of the testing,
individuals earn a CRC or identify areas in which they need further training in order to earn
a CRC. JobLink Career Centers will partner with North Carolina’s Community College
system to make sure that training and education opportunities are available to meet
targeted training needs. There are currently 34 CRC sites around the state with statewide
rollout expected to be completed in 2008.
Targeted Worker Populations
• The Advisory Council on Hispanic/Latino Affairs, appointed by the Governor, focuses
on issues affecting the Hispanic population in North Carolina. It has three major duties: 1)
to advise the Governor on matters concerning the Hispanic community; 2) to establish a
forum for the Hispanic community; 3) and to see that Hispanics are represented in all facets
of government. Workforce development is a major issue with this population group;
therefore, Commission staff attends the meetings, assisting with these types of issues.
• The Office of Hispanic/Latino Initiatives is a community college-based initiative designed
to assist the Hispanic/Latino youth population with successful entry and advancement in
the workforce. Specific goals include accelerating the training and learning process of
Hispanics and building on the strengths of the emerging population for the betterment of
North Carolina’s workforce.
• The Action Agenda to Aid North Carolina’s Dislocated Workers, a plan developed by
the North Carolina Rural Economic Development Center, has both short- and long-term
strategies to assist the thousands of North Carolinians who have been or will be impacted
by job loss, either by business closings or by layoffs. The North Carolina Rural Economic
Development Center, in partnership with Governor Easley’s cabinet agencies and other
stakeholders, developed the Action Agenda (Appendix 2). The State Board will work closely
with state agencies, federal agency partners, and local communities to implement
measures that will assist workers and communities. A task force, under the auspices of the
State Board’s policy and research committee has developed implementation strategies
drawn from the Action Agenda. Implementation strategies implemented to date include the
purchase of a Mobile JobLink Vehicle that will be used to provide on-site assistance to
companies and their workers facing impending layoffs, the development of public
awareness tools to ensure business and workers are aware of the resources and services
available to them, and process strategies that link existing businesses who need workers to
workers who will experience layoffs in local communities.
• The Going Home Initiative is a collaboration of the Department of Corrections (DOC), and
the JobLink Career Center system. Initially supported by a grant from the US Department of
Justice, and leveraged with state activities funds from the Workforce Investment Act (WIA)
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of 1998, this project works with soon-to-be-released inmates from North Carolina’s
correctional institutions to assist in their transitions back into the communities and to
employment.
Market-Driven Demonstration Projects
• Project Health is a demonstration project that began with a grant from the US Department
of Labor (USDOL) high-growth initiative and leveraged with Workforce Investment Act
(WIA) statewide activities reserve funds. This demonstration project is a collaboration
between the State Board, the NCCCS, the North Carolina Hospital Association, and the
public university system (UNC system). By increasing the number of qualified nursing
instructors in the community colleges, this project addresses the shortage of registered
nurses in North Carolina. While the federal project concluded at the end of 2006, learning’s
are still being applied. The project supported 24 nurses to attain Master of Science degrees
in nursing. These nurses became credentialed to teach in our community college system.
For every additional qualified nursing instructor, 12-15 more students can be enrolled in
nursing programs in our community colleges. Learning from this effort continues to pay
dividends in the State.
• The Retail Training Center is a collaboration between the Commission, the Central
Piedmont Workforce Development Board, the National Retail Federation, and Northgate
Associates (a retail shopping center owner). This training center was developed in
response to the need for qualified workers by the retail industry. The training center works
with retail companies to train new and incumbent workers in customer service, sales, and
management skills. Between 2004 and 2006 the Center served 594 individuals with a
placement rate of 74% in retail establishments. Over 50 participants received national
professional certification in customer service by the National Retail Federation.
Millennium Campuses
The Millennial Campus Act makes it possible for any institution in the University of North
Carolina system to develop facilities that encourage university/government/industry
collaborations in research and development. These facilities capitalize on North Carolina’s
considerable research strengths in areas such as biotechnology, education, information
sciences, and microelectronics.
Governor Easley envisions a transformation of existing policies and programs so that they are
more adaptable to the local labor markets around the State. He expects the North Carolina
workforce development system to clearly define the customer base that it serves and the
processes it uses to serve workers and businesses through the forging and strengthening of
partnerships, and to continue building the capacity to do so.
North Carolina will continue to organize multiple partners and funding streams around common
goals, bringing together businesses, workers, educational institutions, social service agencies,
and other partners to design and implement policies and programs that improve labor market
outcomes. North Carolina will take advantage of the broad representation of public and private
interest on the state, regional, and local boards and associations to improve its understanding of
labor market conditions, needs, and strategies.
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The outcome of developing broad collaborations and partnerships at the state and local levels
will be multi-faceted:
• Broader opportunities for workers to be employed in jobs that offer opportunities for
financial stability,
• Higher level of business efficiency and productivity, and
• Enhanced regional and local economies.
The Commission on Workforce Development will launch two initiatives in 2007 that will support
efforts toward transforming our system to meet labor market demands:
In the fall of 2006, North Carolina was chosen as one of five states to become a participant in
the National Governor’s Association’s (NGA) Policy Academy on Sector Strategies. The
challenges faced by our education, workforce development, and economic development
infrastructure compel our state to target sectors with the greatest potential for sustainable
growth. As part of the NGA initiative, a team of state, local, and industry partners are developing
action plans to define how the state will provide guidance, capacity building assistance, and
funding support to build regionally based sector alliances throughout the state. WIA funding will
support an initial competitive grant program for developing sector strategies in the allied health
industry. This grant program is targeted for the summer of 2007. The Governor and the
Commission on Workforce Development are committed to the development of sector initiatives
that include substantial employer engagement, deep community connections, career
advancement opportunities, integrated service delivery and support, industry driven education
and training, and connected regionally based networks.
The Commission has focused its work beginning in 2005 on building local workforce
development board capacity. This has included developing local board standards, supporting
local board access to expanded data and information sources, and developing staff
development methods for local board staff. North Carolina understands the importance of
workforce boards expanding their focus, program design, and resource utilization to support a
more regionally based approach to workforce investment planning, governance and leadership.
The Commission will implement strategies and incentive measures beginning in the spring of
2007 to support local boards’ transformation to regionally focused entities that drive strategic
partnerships and alignments.
Governor Easley’s plan for North Carolina, the One North Carolina Agenda, is a comprehensive,
overarching, inclusive plan to make the State a place “Where every citizen has a chance to play
in the winner’s circle of our economy” (Governor Easley). This comprehensive Agenda includes
a clear vision for developing North Carolina’s youth:
• Build a system of education that gives every child every opportunity to succeed,
regardless of geographic location or economic condition.
• Implement the More at Four pre-kindergarten program to help at-risk four-year olds
start school at grade level, ready to learn.
• Recruit and retain the highest quality educators.
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• Develop a workforce prepared to meet the demands of a global economy by expanding
life-long learning opportunities.
• Enrich students with character education and with knowledge, and keep parents
informed, empowered, and involved with school accountability report cards.
During the 2007-2009 State Plan period the One North Carolina Agenda is committed to
education building a skilled workforce by:
• Expanding More at Four, a statewide pre-Kindergarten program for at-risk four-year-olds.
With proceeds from the N.C. Education Lottery, this program will serve 40,000
children.
• Providing a 9.6 percent increase for education above 2005-06 levels, including teacher
salary increases and bonuses, in addition to an anticipated $425 million in N.C.
Education Lottery revenues.
• Demonstrating results from investing in education:
Fourth graders performed above the national average in reading, behind only
three states in writing and only five states in math.
North Carolina SAT scores reached a new state high in 2005, increasing to an
average score of 1010, twice the average national gain.
• Continuing aggressive high school reform efforts by expanding the number of Learn
and Earn high schools that allow students to obtain a high school diploma and an
associate’s degree or two years of university credit in five years, and increasing the
number of economic development-themed schools through the New Schools Project.
By 2008, both these programs will be available to students in every county.
• Implementing a plan to increase teacher salaries beyond the national average by 2008
while also raising the starting salary.
• Expanding teacher-training opportunities through the community college system,
providing scholarships to prospective teachers and providing more professional
development for teachers and principals.
• Placing 100 literacy coaches in middle schools across the state to train faculty to teach
21st Century skills.
• Establishing the nation’s first 21st Century Skills Center to provide teachers with tools
to more effectively teach students critical learning skills.
• Increasing access to a higher education for all North Carolinians by fully funding
enrollment growth and need-based financial aid at the University of North Carolina
campuses.
• Providing a 15.8 percent increase in funding for community colleges above 2005-06
levels which includes funds for salary increases for faculty and staff, new equipment,
distance learning programs and financial aid.
In addition, having a skilled workforce requires a vibrant economic community. The One North
Carolina agenda establishes an aggressive strategy for job creation and economic growth.
Results include:
• Regularly ranking in the top for business climate.
No. 1 ranking for business climate for four out of the past five years and 2005
Competitiveness Award from Site Selection magazine.
“State of the Year” designation in 2005 and 2006 according to Southern Business
& Development magazine.
• Using smart, targeted, performance-based incentives.
Through the One North Carolina Fund, the state has secured more than 19,000
new jobs and $3 billion in corporate investment since 2001.
The state has also announced the award of 41 Job Development Investment
Grants (JDIG) since 2003. The program has helped secure more than 14,000
jobs and more than $2 billion in investment.
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• Maintaining No. 3 national ranking in biotechnology for the second straight year,
according to Ernst & Young’s survey of the industry.
• Capping the state gas tax to its current level to reduce burdensome fuel costs for
consumers and businesses.
• Increasing the minimum wage from $5.15 to $6.15 an hour.
Governor Easley’s vision for North Carolina is to have a workforce prepared to meet the skill
demands of its economic development strategy for recruitment and expansion of knowledge-based,
high-wage jobs in the State. The One North Carolina Agenda is a call to the business
community to support education and training of their employees. It is a call to current and future
workers to seek and to acquire the education and training they will need to be productive
members of the State’s workforce. More specifically, it is a call to the public workforce
development system and its partners to meet the needs of North Carolina’s employers and
citizens.
The State’s workforce development system will focus on the following workforce investment
priorities:
1. Build workers’ skills to match current and future workforce skills needs. North Carolina
must continue to close the gap between the needs of employers for skilled workers and
the supply of North Carolinians prepared to meet this need. This workforce investment
priority will require continued support and funding for the State’s education and training
system including public schools, community colleges, and universities. These institutions
will require capacity to provide high quality workforce education and training that is
responsive to business needs in order to create and sustain a pipeline of skilled citizens
ready to work productively.
2. Target resources and services to workers who need transition assistance so that they
may be prepared for and benefit from North Carolina’s changing economy and job
opportunities. This workforce investment priority will require the following:
• Expansion of incumbent worker training opportunities for businesses and their
employees to increase worker productivity and to avert worker dislocations.
• A comprehensive strategy for dislocated worker transition assistance to training,
support services, and reemployment.
• Targeting services and resources to new and existing worker pools that may
require special education, training, and support services. These worker pools
include disadvantaged youth (including youth dropouts), the (increasing) immigrant
population, new labor market entrants, and low-wage workers.
3. Continue to build the unified public workforce development system (JobLink) to improve
services to businesses and workers, and to impact North Carolina’s current and future
economic growth. This workforce investment priority will require the following:
• Expansion of the level of service integration among public workforce development
agencies to improve services to business and industry.
• Creative use of multiple funding streams and other funding sources to leverage and
maximize services to workers and employers.
• Marketing and communication strategies that effectively inform workers and
employers of the services and benefits available to them.
• A management and accountability structure within the unified system of multiple
agency partners.
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The Commission on Workforce Development, in partnership with state and regional partners will
support the priorities above by focusing its work in five strategic areas over the next two years
(2007-2009). These areas include:
1. Building strategic partnerships at the state and regional levels to leverage
resources and assets. The State Board will continue to emphasize local board
capacity building and increased service integration of the JobLink service
delivery system in order to drive stronger alignments with economic development,
and business and industry.
2. Redirecting system resources and assets to target limited investments to support
areas of greater impact.
3. Using good data and information to more effectively develop policy, design
programs, and utilize resources.
4. Building the workforce investment delivery system in a way that is easily
recognizable and accessible to business and industry, workers, and other system
customers.
5. Building regionally based alignments and collaborations that ensure broader
cooperation in real labor markets.
See Appendix 16.
.
The State Board (NC Commission on Workforce Development) is housed in the NC Department
of Commerce, which is also responsible for the state level economic development divisions. The
Commission, through its staff, provides collaboration in bringing together the expertise of public
workforce development partners with the economic development community. Additionally,
leaders from each of the public workforce agencies serve on the Commission. Through this
state level collaboration, local workforce development partners receive assistance in aligning
economic development efforts.
Both the structure and organization of the State Board (NC Commission on Workforce
Development) are set forth in North Carolina General Statute 143.B-438.10. The Board has 38
voting members, 32 of which are appointed by the Governor. The remaining six serve by virtue
of their offices as agency heads. The Governor appoints the State Board chair from amongst
the business and industry members. The Secretary of DOC (or his designee) serves as
secretary to the State Board. Members are appointed to four-year terms, and serve at the
pleasure of the Governor.
The Chairperson has the authority to appoint committees and committee chairpersons. The
Chairperson and those serving as committee chairpersons constitute the Executive Committee.
The Executive Committee has the authority to act in the name of the full State Board as
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required, between meetings. All Executive Committee actions reflecting policy decision(s) are
subject to ratification by the full State Board. In addition to the Executive Committee, there are 4
standing committees.
See text below.
See text below.
The State Board’s 38 members are appointed as follows:
• By virtue of their offices, the following department and agency heads or their designees
serve on the State Board: the Secretary of DHHS, the Chair of ESC, the
Superintendent of Public Instruction, the President of NCCCS, the Commissioner of
DOL, and the Secretary of DOC.
• The Governor appoints 32 members as follows:
• Six members representing public, postsecondary, and vocational education;
• Two members representing community-based organizations;
• Six members representing labor; and
• Eighteen members representing business and industry.
The identification of potential State Board members is the ultimate responsibility of the
Governor, as administered by the State Office of Boards and Commissions. Recommendations
for the 32 members appointed by the Governor are received in several ways. Organized labor is
asked to make recommendations for the six members representing labor. Of the six members
representing education, one serves by virtue of his/her position as president of the State
Community Colleges Presidents’ Association. Recommendations for vocational education are
normally received from the State Director for Carl D. Perkins Secondary Education Programs
and the representatives must have experience with respect to youth activities. Any state agency
or community-based organization may make recommendations for the two members who
represent community-based organizations.
Any group or individual may make recommendations for private sector appointments of persons
who have an interest in North Carolina’s workforce development system. Representatives from
key industry sectors (as identified by the Policy and Research Section, North Carolina DOC) are
recruited to assure that the Board’s membership reflects a true picture of North Carolina, from
both an economic development and a geographic perspective. The State Office of Boards and
Commissions receives all recommendations but the final decision remains with the Governor.
Eighteen members of the Commission must represent business and industry. North Carolina
has made a concerted effort to assure that business leaders appointed to the Commission have
both hiring authority as well as an understanding of the workforce development system. To
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assure that ties with economic development are maintained and strengthened, members who
represent the major employment sectors as well as regional economic development leaders are
encouraged for Commission membership
See text below.
See text below.
See text below.
North Carolina General Statute assigns all functions required in 111(d) and 20 CFR 661.205.
Board functions are defined in the General Statue to be as follows:
143B-438.12. Federal Program Administration
(a) Federal Workforce Investment Act. – In accordance with the federal Workforce
Investment Act, the Commission on Workforce Development shall develop a Five-Year
Strategic Plan to be submitted to the U.S. Secretary of Labor. The Strategic Plan shall
describe the workforce development activities to be undertaken in the State to implement
the federal Workforce Investment Act and how special populations shall be served.
(b) Other Workforce Grant Applications. – The Commission on Workforce Development
may submit grant applications for workforce development initiatives and may manage the
initiatives and demonstration projects. (1999-237, s. 16.15(b)).
In addition to the functions described above, the Commission (State Board) also:1) reviews
annually the measures taken by the State Board of Education concerning section 113(b)(14) of
the Carl D. Perkins Vocational and Applied Technology Education Act, 2) designates Local
Areas, and 3) reviews developments related to the statewide employment statistics system
provided through Wagner-Peyser.
A calendar is published annually of all meetings of the Commission. Meeting dates and
locations are broadcast to the public via email distribution lists and via the DOC Web site. All
meetings are held in a public location with handicapped access for people with disabilities. A
public gallery is available to accommodate public attendees.
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General information related to the Commission is available to the public at
www.nccommerce.com/workforce. This Web site information explains the various functions of
the Commission and lists its members. For those wishing to be added to the distribution list for
meeting agenda and minutes, contact information is also available. A sign up sheet for same is
available at each Commission meeting.
Circumstances which constitute a conflict of interest are defined as any vote on matters (policy,
procedure, grant or award) which has a direct bearing on services to be provided by that
member or by an immediate family member, any organization which such member or an
immediate family member directly or indirectly represents, any matter which would financially
benefit such member or an immediate family member, or any organization such member or an
immediate family member represents. (State Bylaws, Article IV, Section 5)
Resources for the Commission on Workforce Development include support staff and travel
reimbursement.
See text below.
See text below.
The Governor established a state level workforce development management alliance (Alliance).
This Alliance is charged with implementing plans, policies, and strategic initiatives that involve
multiple agency programs and resources. The Alliance is comprised of leadership from the
following state level entities:
• Representative from the Office of the Governor, chair of the Alliance
• Chairman of the Employment Security Commission
• President of the Community College System
• Secretary of the Department of Commerce
• Secretary of the Department of Health and Human Services
The State Economic Development and the Commission on Workforce Development (State
Board) endorsed this structure as an effective means of implementing programs and policies
that involve multiple agencies and programs, and of establishing clearer lines of communication
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among state and local agencies within the JobLink network. The Alliance is expected to be the
program management level line of communication between state and local agencies and the
State Board, the State EDB, and the Governor’s office.
See additional details concerning the Alliance in Section I of this plan.
An additional approach to ensuring accountability, collaboration, and effectiveness of the
services provided by workforce programs is a collaborative initiative to develop a new
methodology for evaluating North Carolina's workforce development system.
The cornerstone of this initiative is the redefining of workforce development as a process based
on function rather than funding. To this end, a work group of partner agency representatives and
local level staff developed this working definition: North Carolina’s workforce development
system is a group of interacting, interrelated, and interdependent elements that strengthen, help
to improve, and aid in the growth of people who work, people who are available to work, and the
businesses and industries which employ them.
Representatives from the following partner agencies are involved in this initiative: the
Commission (State Board), the Division of Workforce Development, ESC, NCCCS, DOL, the
UNC system, Division of Vocational Rehabilitation (DVR), the North Carolina Department of
Public Instruction, the Division of Social Services (part of DHHS), the Division of Services for the
Blind (part of DHHS), and the Department of Correction.
A resource for establishing priorities and services for youth is a team already in place.
Composed of representatives from Juvenile Justice, Community Colleges, WIA programs, and
Social Services, this team attended the regional youth forum in Chicago in November 2004.
With on-going dialogue and a focus on youth issues, this team plays a vital role in supporting
the work of the State.
Another team-oriented strategy that North Carolina will continue to use is that of the Local Area
Youth Leads Team supported by the 24 Local Workforce Development Boards and Directors.
Representing North Carolina’s 24 Youth Councils, this active group meets several times per
year to identify strategies for improving coordination and collaboration. Each session is an
opportunity for team members to share up-to-date information on best practices, state level
updates, and emerging issues. This information-sharing includes input from those who serve
youth. For example, Department of Public Instruction staff have met with the group to brief them
on high school graduation requirements and dropout policies; additionally, DHHS staff met with
the group to discuss opportunities for foster youth under the John Chafee Act. With plans to
have Agency representatives continue to play vital parts in these meetings, North Carolina uses
this group to help develop and strengthen its business connections. In addition, a Youth Leads
listing has been established so that members can quickly and easily discuss questions or issues
of the day. A two-day training event established around emerging issues and technical
assistance needs to include the attendance of Youth Council Chairs and Workforce
Development Board Directors is held annually.
At the local level, North Carolina will encourage its Youth Councils to continue their work in
developing broader roles within the community — roles beyond that of just WIA employment
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and training — roles that embrace a youth development perspective and take into account a
wide range of community issues. These far-reaching issues can have a huge impact on the
success of youth, especially those at risk, in the labor market. One example of reaching out is
reflected by local area Youth Councils including members from emerging and in-demand
occupations.
Further, North Carolina will continue to strengthen its expectations for youth professionals. The
State supports its youth professionals to become even more knowledgeable about their local
economies (current status, future projections, high-growth industries, and career paths); and
encourages JobLink Career Center professionals to make connections to specialized youth
programs for dropout youth who are using core services and can benefit from the addition of
intensive services.
As is proposed in the current re-authorization discussion, should Youth Councils (at the
discretion of the local WDBs) become optional, North Carolina will work with its WDBs to
promote an integrated youth agenda. Accordingly, North Carolina will support local boards that
opt to retain their Youth Councils and task them with the broader community role
Another resource to guide an integrated vision for serving youth in North Carolina is the NC
Youth In Transition Collaborative. The NC Youth In Transition Collaborative (NCCYT) is a group
of concerned representatives from public and private agencies who work together to promote
successful transitions to adulthood for youth who are or have been served by public agencies.
Many of these youth, without adequate supports, could easily become disconnected from
opportunities, networks, supports and services that will enable these youth to thrive. The
collaborative has established these givens about itself:
• “We are all passionate about the youth we serve
• No agency or organization alone can serve all youths' needs
• There are overlaps and gaps in services
• In order to better serve youth, we are here to work together to address the overlaps
and gaps (e.g., interagency collaboration)
• Focus is on prevention (i.e., we will keep asking ourselves "how can we work together
to better support transition-age youth to become self-sufficient, healthy adults?")”
Members of this collaborative include NC Administrative Office of the Courts, Communities in
School, NC Department of Commerce, Concern of Durham, Greenhouse for Boys and
Greenhouse for Girls, NC Department of Health and Human Services, NC Department of
Juvenile Justice and Delinquency Prevention, NC Department of Public Instruction, Homeless
Program, NC Division of Vocational Rehabilitation Services, Transition Services, Independent
Living Resources, Inc, NC Division of Social Services, LINKS, NC Guardian ad Litem Program,
North Carolina Community College System, SaySo Inc. (foster care advocates), and the NC
Youth Advocacy and Involvement Office.
?
During the last half of the 20th century, manufacturing was seen as the traditional source of
“good jobs” for most workers in North Carolina. Even as far back as 1990, service-providing
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industries were the dominant employers in the State. In that year, service industries accounted
for over two-thirds of the annual average employment. During the last decade of the 20th
century, economic fluctuations followed by structural adjustments in the “innovations and
technology developments” sector transformed the state economy. These changes resulted in an
increase in the dominance of the services sector in North Carolina’s labor market. As of 2006,
service-providing industries accounted for almost four-fifths of total non-farm employment in the
State.
The average (mean) quarterly employment in North Carolina during 2nd quarter of 2006, was
3,956,273; this figure includes workers employed at firms subject to the State’s unemployment
insurance (UI) statutes (i.e., “covered” employment). Appendix 3 shows the distribution of
employing establishments, quarterly employment, and wages by industry sector. Over half of
the State’s workers were employed in one of five industry sectors: Manufacturing (14.0 %),
Health Care and Social Assistance (12.8%), Retail Trade (11.4%), and Education Services
(9.1%), and Accommodation and Food Services (8.4%). However, the distribution of employing
units (i.e., firms) by industry sector is markedly different: only two of the five dominant employing
sectors, Retail Trade (13.6%) and Health Care (7.8%), are among the dominant establishment
sectors. The other sectors with a majority of the State’s employing units include Construction
(11.6%); Professional, Scientific, and Technical Services (9.7%); and Other Services (7.2%).
When compared to the nation, the distribution of employers and workers within the State by
sector is similar. One striking difference is that, for the United States as a whole, Manufacturing
is the third largest sector (13.1%) in terms of employment, while in North Carolina it is the
largest sector.
Slightly less than half of the total North Carolina wages during 2006, Quarter 2, were paid in five
employment sectors which included the State’s dominant sectors, Manufacturing (17.0%),
Health Care (13.1%), Education (8.6%), and Retail Trade (7.5%). The fifth dominating sector, in
terms of wage share, is Professional and Technical Services (6.4%). Even though only 4.3% of
the total labor force works in this sector, it makes up 9.7% of all establishments.
Across all industries, the average weekly wage was $690. Employees in Health Care,
Education, and Construction industries had average wages close to the state’s average, while
those in Retail Trade, Accommodation and Food Services, and Other Services received wages
far below the State’s average. In contrast, employees in Manufacturing, Wholesale Trade, and
Professional Services made weekly average wages that were at least $150 greater than the all
industries’ weekly average. This pattern is similar to that seen when comparing sector wages at
the national level. However, the State’s wages are, overall, about 88% of the nation’s; among
North Carolina’s dominant sectors, the average weekly wage ratio (NC:US) ranges from .83 for
Construction to .93 for Wholesale and Retail Trade.
An accurate description of North Carolina’s economic base must consider the significant
diversity present within the State. At the finest level of detail (at the six digit NAICS level) there
are over 1,000 industry groups representing all the establishments and employers of North
Carolina. Close to 500 of these industries report average quarterly employment of 1,000 or
more workers. Considerable diversity remains in the State’s industrial mix even when it is
narrowed down to high employment establishments. Twenty-eight industries had quarterly
average employment of 20,000 or more during 2nd quarter of 2006. This short list includes
industries with average weekly pay ranging from $210 (Limited-service restaurants) to $1,335
(Managing offices). These industries also vary in terms of establishment sizes, ranging from
relatively small operations with an average of 5 employees (New Single-family housing
construction) to those with over 1,000 workers (General Medical and Surgical Hospitals).
The diversity of North Carolina’s economic base is also geographic. Appendix 4 gives maps of
the State’s 100 counties. The maps are coded by dominant industry sector, with the top map
showing the sector that accounts for the largest share of employment in the county during 2006,
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Quarter 2, and bottom map showing the industry sector with the largest share of total wages
paid during the same period. The continued significance of manufacturing in North Carolina is
clearly seen in more than half the counties.
The industrial shifts that took place during the latter half of the 20th century and the early years
of the 21st century are expected to continue over the next several years. These changes will
continue to impact the State's industrial structure and occupational employment patterns. North
Carolina’s industry employment is expected to reach 4.8 million in 2014. This represents an
increase of almost 700,000 jobs from employment levels in 2004. North Carolina will continue to
experience both growth and dominance within its service providing industries and declines
within natural resources and mining, as well as manufacturing industries. The State's
Manufacturing super sector will still be a major industrial force but will continue to be impacted
by job losses.
By 2014, North Carolina's service providing industries will comprise 76% of total employment,
goods producing industries are expected to decrease to 17%, while self-employment will
continue to comprise about 7% of all employment. More than half of all employment will be
concentrated in three service providing super sectors: Education and Health (21%); Trade,
Transportation and Utilities (18%); and Professional and Business Services (12%).
North Carolina's Goods Producing industries are projected to experience an increase of 4,300
jobs. Employment within the Manufacturing super sector is projected to decline by more than
40,600 jobs. These job losses will continue to be dominated by losses in Textiles; Apparel;
Furniture and Related Products; and Beverage and Tobacco Products. However, North Carolina
will experience expansion in other Manufacturing sub sectors which will help to offset some of
these losses. These growing Manufacturing sub sectors include industries which produce
Chemicals; Fabricated Metal Products; Food; Transportation Equipment; Wood Products;
Electrical Equipment; and Primary Metal Manufacturing.
Within the other Goods Producing industries, North Carolina will experience employment
declines in its Natural Resources and Mining super sector due to job losses within the Crop and
Animal, Forestry and Logging production industries. Construction industries will continue to
grow and add more than 45,400 jobs. This growth will be due to significant expansion within the
Specialty Trade Contractors, and moderate expansion within both Heavy and Civil Engineering
Construction; and Construction of Buildings.
North Carolina's Service Providing industries are expected to expand to over 3.7 million jobs by
2014, an increase of more than 664,300 jobs over 2004 employment levels. Employment growth
within the Education and Health Services industries will outpace other industrial super sectors.
This super sector is expected to add more than 232,300 jobs and includes several of the State's
significant growth industries: Educational Services; Ambulatory Health Care Services; Hospitals;
Nursing and Residential Care Facilities; and Social Assistance Industries.
The Trade, Transportation and Utilities super sector will add more than 123,100 jobs, with
employment growth expected in 22 of the industry's sub sectors. Employment growth within this
super sector will be dominated by growth in General Merchandise Stores; Truck Transportation;
Merchant Wholesalers of Durable and Non-Durable Goods; Motor Vehicle and Parts Dealers;
and Miscellaneous Store Retailers.
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Natural Resources and Mining 16,840 16,360 -480 -0.1
Construction 218,470 263,880 45,410 6.6
Manufacturing 578,710 538,120 -40,590 -5.9
Trade, Transportation, and Utilities 749,160 872,280 123,120 17.8
Information 72,370 83,420 11,050 1.6
Financial Activities 188,060 217,060 29,000 4.2
Professional and Business Services 430,540 567,650 137,110 19.9
Education and Health Services 778,960 1,011,280 232,320 33.6
Leisure and Hospitality 348,930 428,640 79,710 11.5
Other Services (Except Government 155,450 181,560 26,110 3.8
Government 264,000 289,930 25,930 3.8
Over 137,000 jobs are expected to be added to the Professional and Business Services super
sector. This includes North Carolina's fastest growing sub sector: Administrative and Support
Services, as well as expansion in Professional, Scientific, and Technical Services; and
Management of Companies and Enterprises. The State will continue to experience growth in the
Leisure and Hospitality super sector, with the addition of 80,000 jobs. This increase will be
largely impacted by the continued growth in Accommodation and Food Services.
By 2014, the Financial Activities super sector is expected to expand by 29,000 jobs. This will be
due to significant growth in Credit Intermediation and Related Activities; Insurance Carriers and
Related Activities; and Real Estate. Growth within the Government super sector will be
impacted by employment growth in both local and State government. Employment increases
within the Other Services super sector will be driven by growth in the Religious, Grant-making,
Civic, Professional, and Similar Organizations sub sector. North Carolina's smallest service-providing
super sector, Information, will experience job growth due to employment increases
within Publishing industries; Internet Service Providers, Web Search Portals, and Data
Processing Services.
During the last several years, North Carolina's occupational employment patterns have been
impacted by changes in both its industrial structure and workforce composition. Over the next
several years, these changes will continue to be driven by both occupational growth (new jobs)
and replacement needs (turnover), with replacement needs outpacing occupational growth.
By 2014, over two-thirds of the State's occupational employment will be concentrated in eight
occupational groups: Office and Administrative Support Occupations; Sales and Related
Occupations; Production Occupations; Food Preparation and Serving Related Occupations;
Transportation and Material Moving Occupations; Education, Training, and Library Occupations;
Management Occupations; and Healthcare Practitioners and Technical Occupations.
Over the next several years, North Carolina is expected to continue to experience declines
within its traditional manufacturing industries and related occupations. At the same time, the
State will continue to experience growth within its service providing industries and related
occupations. These industrial and occupational shifts will continue to impact North Carolina's
economic landscape and its workforce development strategies.
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(Appendices 5 – 10).
?
As North Carolina's economy has shifted from goods producing to service providing, demand for
skilled workers has been on the rise. Demands for skilled workers span a diverse set of
industrial sectors and occupational groupings. In 2004, more than 300 of the State's 712
occupations required at least some postsecondary vocational training. In 2004, the number of
skilled jobs was about 1.1 million and is expected to grow to 1.4 million by 2014.
Over the next several years, employment growth and replacement needs will drive North
Carolina's occupational employment patterns. Several of the State's skilled occupations are
expected to increase or maintain employment levels. Ten year projections, spanning the decade
between 2004 and 2014, indicate that one third of all job growth will come from employment
expansion in 282 skilled occupations. By 2014, 29% of the State's workforce will be employed in
skilled occupations.
Although these skilled occupations span 18 different occupational groups, more than two-thirds
of them are concentrated in six occupational groupings: Office and Administrative Support
Occupations; Sales and Related Occupations; Production Occupations; Transportation and
Material Moving Occupations; Education, Training, and Library Occupations; Management
Occupations; and Healthcare Practitioners and Technical Occupations.
Demand for workers in these skilled occupations and related industries are expected to increase
over the next several years, thus requiring additional workers with advanced education and
training. Through the provision of targeted training programs, North Carolina's workforce
development system can serve as the foundation for helping to meet the growing demands for
skilled workers.
(Appendices 11 – 12).
One hundred and sixty occupations are identified as critical to North Carolina’s economy. The
“critical list” includes 22 major occupational groups, a diverse group that spans a variety of
education/training levels and major occupational groups. Table IV D, below, shows the
distribution of critical occupations by major group. With the exception of Farming, Fishing, and
Forestry, all of the major groups are represented. This majority representation reflects the
current and future diversity of North Carolina’s economy.
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Management 7
Business and Financial Operations 8
Computer and Mathematical 6
Architecture and Engineering 2
Life, Physical, and Social Science 2
Community and Social Service 4
Legal 4
Education, Training, and Library 6
Arts, Design, Entertainment, Sports, and Media 1
Healthcare Practitioners and Technical 10
Healthcare Support 5
Protective Service 6
Food Preparation and Serving 14
Building and Grounds Cleaning and Maintenance 7
Personal Care and Service 6
Sales and Related 11
Office and Administrative Support 20
Farming, Fishing, and Forestry 0
Construction and Extraction 14
Installation, Maintenance, and Repair 9
Production 8
Transportation and Materials Moving 10
160
Occupational groups that are particularly critical to the State include the following:
• Office and administrative support,
• Healthcare practitioners, technicians, and support,
• Food preparation and serving,
• Construction and extraction,
• Sales and related, and
• Transportation and materials moving.
The critical occupations within the above six groups encompass a variety of training/education
and/or skill needs.
In sum, the occupations that are critical to North Carolina's current and future growth reflect the
state’s economic diversity and indicate a need for a workforce that can meet the demand for a
variety of different types of jobs.
Overall, 73 different skill, knowledge, and ability dimensions were important or very important for
at least one of the State’s critical occupations. The wide range of dimensions relevant to the
performance of job duties for the critical occupations highlights the diversity of the North
Carolina labor market and economy, reinforcing the state’s need for a workforce consisting of
individuals with varied skills. Many of the level requirements for the critical occupations’ most
important worker requirements are in the moderate or high categories, an indication of a current
and continuing need for workers with investments in education and training.
Despite the high level of variation in the skill, knowledge, and ability requirements of the State’s
critical occupations, some commonalities are apparent. First, skills, knowledge, and abilities
related to Communication are required for almost all of the critical occupations; 133 of the 160
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critical occupations had ratings of important or very important for at least one dimension
grouped in this type. Within the Communication group, dimensions related to oral
communication are the most common, followed by reading, and then by writing.
The second most common type of skill, knowledge, and ability dimensions required by the
State’s critical occupations is Interpersonal; 112 of the 160 critical occupations had ratings of
important or very important for at least one dimension grouped in this type. The most commonly
required dimension is Customer Service, followed by the dimension related to Teaching and
Learning. Close behind the Interpersonal type in prevalence were the dimension in the Process
and Problem-Solving group, where 61% of the critical occupations had an important or very
important requirement. Within this type, the emphasis, for the critical occupations, is on
dimension related to Problem Solving (i.e., Critical Thinking, Judgment, and Decision-Making).
Significant portions of the critical occupations have requirements in the other types as well.
More than half of these occupations have an important or very important rating for at least one
dimension within the Business, Management, and Production group while exactly half have this
importance rating for dimension within the Mathematics and Science group. More than two-fifths
of the critical occupations require at least one of the dimension within the Technology Use,
Maintenance, and Design group, with an emphasis on use and maintenance of technology
rather than design. Finally, 73 of the critical occupations have at least one requirement for a
Specialty Knowledge.
(Appendix 13).
?
North Carolina’s current working age population, ages16 to 64, is estimated to be 5.9 million. It
is projected to grow approximately 10% to nearly 6.5 million by the year 2014. This projected
growth (see Table IV F, below) will provide a potential 612,073 additional workforce members,
39% of which are of prime working ages, 25 to 54 years old. North Carolina is also likely to see
an increase of both older and younger workers.
Age 2006 Population Estimates* 2014 Population
Projections* Net Change
Expected
Growth
Rate
16-24 1,159,598 1,294,242 134,644 12%
25-54 3,776,213 4,015,961 239,748 6%
55-64 942,014 1,179,695 237,681 25%
Total 5,877,825 6,489,898 612,073 10%
*Source: North Carolina State Demographer available at http://demog.state.nc.us
The actual number of workers in 2014 will depend on future labor force participation rates,
which in turn depend on a myriad of factors such as economic and cultural conditions. Applying
current labor force participation rates to the above population growth projections provides an
estimate of the workforce in 20142. See Table IV FF.
This estimate is presented with the caveat that future participation rates will likely not be the same as they are in
2006. For example, participation rates of older workers may change depending on public perception of the stability of
Social Security. In an attempt to produce a more robust estimate of the future workforce, labor force participation
rates were calculated for North Carolina for the most recent year available, 2006.
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Age
2014 Population
Projections1
2006 Labor
Force2
2006 Labor
Force
Participation
Rate2
Estimated
Workforce 2014 Net Change
16-24 1,294,242 715,472 61.7% 798,547 83,075
25-54 4,015,961 3,145,585 83.3% 3,345,295 199,710
55-64 1,179,695 559,556 59.4% 700,738 141,182
Total 6,489,898 4,420,613 74.6% 4,844,580 423,967
1 North Carolina State Demographer available at http://demog.state.nc.us
2 As reported by the American Community Survey
It is estimated that 424,000 workers will be added to North Carolina’s workforce by 2014, and
that the total workforce between the ages of 16 and 64 will increase to just under 5 million – 3.3
million of prime working age. The number of both younger and older workers will increase by
224,000. The numbers of older workers are projected to increase by roughly 25%.
?
North Carolina is one of the fastest growing states, according to the Census Bureau’s special
report, “Cumulative Estimates of Population Change for the United States, Regions, States and
Puerto Rico and Region and State Rankings: April 1, 2000 to July 1, 2006”3, and was sixth in
the nation in terms of net growth. Nearly 500,000 working age people were added to North
Carolina’s population between 2000 and 2006 (see Table IV G, below). North Carolina has
experienced population growth rates above the national average throughout the 1990s and
early 2000s as well as consistently large positive annual net migration rates4; therefore it is
projected that this trend will continue.
Available at http://www.census.gov/.
4 See graphs of population growth rates and migration rates under State Highlights at http://demog.state.nc.us/.
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299,398,4
84
281,424,60
2
17,973,88
2
6.4 (X) (X) (X) (X)
54,741,35
3
53,594,78
4
1,146,56
9
2.1 4 4 4 4
66,217,73
6
64,395,19
4
1,822,54
2
2.8 3 2 3 3
109,083,7
52
100,235,8
46
8,847,90
6
8.8 1 1 1 2
69,355,64
3
63,198,77
8
6,156,86
5
9.7 2 3 2 1
.Alabama 4,599,030 4,447,351 151,679 3.4 23 23 27 34
.Alaska 670,053 626,931 43,122 6.9 47 48 42 17
.Arizona 6,166,318 5,130,632 1,035,68
6
20.2 16 20 5 2
.Arkansas 2,810,872 2,673,398 137,474 5.1 32 33 28 22
.California 36,457,54
9
33,871,65
3
2,585,89
6
7.6 1 1 2 15
.Colorado 4,753,377 4,302,015 451,362 10.5 22 24 10 8
.Connecticut 3,504,809 3,405,602 99,207 2.9 29 29 32 37
.Delaware 853,476 783,600 69,876 8.9 45 45 37 10
.District of
Columbia
581,530 572,059 9,471 1.7 50 50 49 44
.Florida 18,089,88
8
15,982,82
4
2,107,06
4
13.2 4 4 3 6
.Georgia 9,363,941 8,186,816 1,177,12
5
14.4 9 10 4 3
.Hawaii 1,285,498 1,211,537 73,961 6.1 42 42 36 20
.Idaho 1,466,465 1,293,956 172,509 13.3 39 39 23 5
.Illinois 12,831,97
0
12,419,64
7
412,323 3.3 5 5 11 36
.Indiana 6,313,520 6,080,517 233,003 3.8 15 14 21 28
.Iowa 2,982,085 2,926,382 55,703 1.9 30 30 40 41
.Kansas 2,764,075 2,688,824 75,251 2.8 33 32 35 38
.Kentucky 4,206,074 4,042,285 163,789 4.1 26 25 24 27
.Louisiana 4,287,768 4,468,958 -181,190 -4.1 25 22 51 51
.Maine 1,321,574 1,274,923 46,651 3.7 40 40 41 31
.Maryland 5,615,727 5,296,506 319,221 6.0 19 19 14 21
.Massachusett
s
6,437,193 6,349,105 88,088 1.4 13 13 33 46
.Michigan 10,095,64
3
9,938,480 157,163 1.6 8 8 26 45
.Minnesota 5,167,101 4,919,492 247,609 5.0 21 21 19 23
.Mississippi 2,910,540 2,844,656 65,884 2.3 31 31 38 40
.Missouri 5,842,713 5,596,683 246,030 4.4 18 17 20 25
.Montana 944,632 902,195 42,437 4.7 44 44 43 24
.Nebraska 1,768,331 1,711,265 57,066 3.3 38 38 39 35
.Nevada 2,495,529 1,998,257 497,272 24.9 35 35 9 1
.New
Hampshire
1,314,895 1,235,786 79,109 6.4 41 41 34 18
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.New Jersey 8,724,560 8,414,347 310,213 3.7 11 9 16 30
.New Mexico 1,954,599 1,819,046 135,553 7.5 36 36 29 16
.New York 19,306,18
3
18,976,82
1
329,362 1.7 3 3 13 43
.North Carolina 8,856,505 8,046,491 810,014 10.1 10 11 6 9
.North Dakota 635,867 642,200 -6,333 -1.0 48 47 50 50
.Ohio 11,478,00
6
11,353,14
5
124,861 1.1 7 7 31 48
.Oklahoma 3,579,212 3,450,654 128,558 3.7 28 27 30 29
.Oregon 3,700,758 3,421,436 279,322 8.2 27 28 18 12
.Pennsylvania 12,440,62
1
12,281,05
4
159,567 1.3 6 6 25 47
.Rhode Island 1,067,610 1,048,319 19,291 1.8 43 43 46 42
.South
Carolina
4,321,249 4,011,816 309,433 7.7 24 26 17 14
.South Dakota 781,919 754,844 27,075 3.6 46 46 44 33
.Tennessee 6,038,803 5,689,262 349,541 6.1 17 16 12 19
.Texas 23,507,78
3
20,851,79
0
2,655,99
3
12.7 2 2 1 7
.Utah 2,550,063 2,233,198 316,865 14.2 34 34 15 4
.Vermont 623,908 608,827 15,081 2.5 49 49 47 39
.Virginia 7,642,884 7,079,030 563,854 8.0 12 12 7 13
.Washington 6,395,798 5,894,140 501,658 8.5 14 15 8 11
.West Virginia 1,818,470 1,808,350 10,120 0.6 37 37 48 49
.Wisconsin 5,556,506 5,363,715 192,791 3.6 20 18 22 32
.Wyoming 515,004 493,782 21,222 4.3 51 51 45 26
3,927,776 3,808,603 119,173 3.1 (X) (X) (X) (X)
Note: The April 1, 2000 Population Estimates base reflects changes to the Census 2000 population from the Count
Question Resolution program and geographic program revisions. (X) Not applicable. See Geographic Terms and
Definitions at http://www.census.gov/popest/geographic/ for a list of the states that are included in each region.
Table IV G: Cumulative Estimates of Population Change for the United States, Regions, States and Puerto Rico and
Region and State Rankings: April 1, 2000 to July 1, 2006 (NST-EST2006-02)
Source: Population Division, U.S. Census Bureau
Release Date: December 22, 2006
As a result of migration, North Carolina’s labor pool is becoming more diverse (Appendix 14).
The net migration rates are positive for each of the workforce age categories when broken out
by race, meaning that more people of all ages and races are moving into North Carolina than
are moving out. Migration increases the diversity of North Carolina as more people of color
move in and stay. For example, nearly 20% of people of current Hispanic and “Other/Multiple
Races” can be accounted for by net migration, as well as 7.9% of the current Asian/Pacific
Islander population. In 2005, the Hispanic population accounted for nearly 5% of North
Carolina’s total working age population, up from 1.4% in 1995. While a smaller portion of
Hispanics live in North Carolina (5.6% of the total population) relative to the nation as a whole
(13.8%), the presence of this population is a relatively new phenomenon that presents
challenges to the State’s education and training systems in addressing the language barriers.
The educational levels and occupations of migrants are presented in Table IV GG, below. The
net migration rates are positive for each of the educational categories and occupations,
meaning that more people of all educational levels and occupations are moving in than are
moving out. It appears that North Carolina has benefited from the migration, with increases in
the numbers of college educated in the available labor pool, and increased numbers of people
working in Professional and related occupations.
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Less than High School 182,289 155,526 26,763
High School 216,255 118,852 97,403
Some College/Associate Degree 283,185 158,341 124,844
Bachelor's Degree or higher 272,352 167,403 104,949
Management, business and
financial operations 102,558 65,875 36,683
Professional and related 175,094 99,432 75,662
Healthcare support 13,849 7,644 6,205
Protective support 11,876 10,293 1,583
Food preparation and serving 48,295 21,591 26,704
Building and grounds cleaning
and maintenance 22,939 9,239 13,700
Personal care and service 18,861 10,799 8,062
Sales and related 86,556 51,648 34,908
Office and administrative support 107,606 61,173 46,433
Farming, fishing, and forestry 7,826 2,323 5,503
Construction and extraction 56,739 19,672 37,067
Installation, maintenance and
repair 37,005 16,955 20,050
Production 71,006 27,208 43,798
Transportation and Materials
Moving 41,115 23,545 17,570
Military-Specific 34,093 12,868 21,225
Source: 2000 Decennial Census, 5% Public Use Micro-Sample
The skill needs of jobs in the current and future labor market are varied in type, but similar in
terms of requiring moderate or high levels of the necessary skills, knowledge, and abilities.
Skills are defined as the ability to produce solutions. In order to identify skills gaps in the North
Carolina labor market in the next decade, occupations are analyzed using the Occupational
Information Network (O*NET). O*NET divides skills into six groups: basic skills ( developed
capacities that facilitate learning or the more rapid acquisition of knowledge), complex problems
solving skills (developed capacities used to solve novel, ill-defined problems in complex, real-world
settings), resource management skills (developed capacities used to allocate resources
efficiently), social skills (developed capacities used to work with people to achieve goals),
system skills (devolved capacities used to understand, monitor, and improve socio-technical
systems), and technical skills (developed capacities used to design, set-up, operate, and correct
malfunctions involving application of machines or technological systems).
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Reading Comprehension 100.0 Basic
Active Listening 97.1 Basic
Speaking 94.3 Basic
Writing 91.4 Basic
Critical Thinking 88.6 Basic
Active Learning 85.7 Basic
Instructing 82.9 Social
Learning Strategies 80.0 Basic
Monitoring 77.1 Basic
Coordination 74.3 Social
As shown in the preceding table (Table IV H) most jobs in North Carolina require basic skills. Of
the ten skills that are projected to be in the greatest demand over the next decade, eight of them
belong to the basic skills group. The remaining two, Instructing and Coordination belong to the
social skills group.
Skill gaps change as the education and training requirements change. Occupations that require
post secondary vocational training mostly have a similar major skill gap as the general
population. However, time management and social perceptiveness, become more important and
critical thinking and instructing others decreases. Generally speaking, the higher the level of
education the greater the need for critical thinking and active listening. Regardless of training,
most jobs in North Carolina require reading, writing, speaking, active listening and critical
thinking.
Knowledge is a learned set of facts and principles that are required by many different
occupations. Across the state, high levels of specific knowledge such as Customer and
Personal Services; English Language; Education and Training; Mathematics; and Psychology
will continue to be in high demand over the next decade (Table IV HH)
Customer and Personal Service 100.0
English Language 97.0
Education and Training 93.9
Mathematics 90.9
Psychology 87.9
Sales and Marketing 84.8
Clerical 81.8
Administration and Management 78.8
Computers and Electronics 75.8
Medicine and Dentistry 72.7
Mechanical 69.7
Therapy and Counseling 66.7
Economics and Accounting 63.6
Design 60.6
Law, Government and Jurisprudence 57.6
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Occupations that require less than a year of on-the-job training, work experience in a related
occupation, vocational training, or an Associate’s Degree are expected to experience a greater
need for knowledge in Customer and Personal Service. Occupations that need longer term on-the-
job training, or work experience in a related occupation are also predicted to need more
knowledge in Sales and Marketing, Clerical, and the English Language. In the Building and
Construction occupations, a major skills gap will exist in Mechanical, Customer and Personal
Service knowledge.
With the growth in Health Care and Educational Services occupations, many of which require an
Associate’s Degree, there will be a large knowledge gap in Psychology, Medicine and Dentistry,
English Language, Clerical, Computers and Electronics, and Education and Training.
It is predicted that there will be an increased need for more people trained in Education and
Training techniques for those occupations that require a Bachelor's Degree, a Master's Degree,
or a Doctoral Degree. Occupations that demand Bachelor's or higher degrees, plus work
experience, will show a growing gap in Administration and Management, and English Language
knowledge. Among the areas of technical knowledge that require a Bachelors Degree or higher
will be Chemistry, Computers and Electronics, Customer and Personal Service, Education and
Training, English Language, Mathematics, Medicine and Dentistry, Psychology, and Therapy
and Counseling.
Skills and knowledge requirements are worker characteristics, where as work activities involve
occupational characteristics. O*NET identifies generalized work activities (GWA) which
summarize tasks that may be performed within a group of occupations. In general, future jobs
will require people to have the ability to work with others, communicate and adapt to changing
situations. The following table (Table IV HHH) reports what is projected to be the most common
GWA’s.
Establishing and maintaining interpersonal relationships 100.0
Getting information needed to do the job 97.6
Communicating with supervisors, peers or subordinates 95.1
Updating and using job-relevant knowledge 92.7
Organizing, planning and prioritizing work. 90.2
Identifying objects, actions, and events 87.8
Making decisions and solving problems 85.4
Monitoring processes, materials or surroundings 82.9
Working directly with the public 80.5
Handling and moving objects 78.0
Processing information 75.6
Assisting and caring for others 73.2
Communicating with persons outside the organizations 70.7
Performing general physical activities 68.3
Resolving conflicts and negotiating with others 65.9
See text below.
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These are critical workforce development issues in North Carolina:
• Skill gaps between North Carolina’s current workforce versus current and future
workforce needs in the business and industrial base;
• Adequate funding and support of the State’s education and training infrastructure —
funding sufficient to meet current and future demands for workers with requisite skills;
• Education, training, and related needs of critical North Carolina labor pools, including
dislocated workers, low skilled immigrant workers, older youth, high school dropouts,
low-wage workers, and low-skilled incumbent workers;
• Impending baby-boom retirements and the potential skill gaps resulting from
retirements; and
• The fast, efficient ability of the State’s public workforce development system to improve
and to change in order to meet rapidly evolving community workforce and economic
needs.
North Carolina will continue to grow and improve its JobLink Career Center system as the
primary method of forging broad-based partnerships in its workforce development system. The
NC Commission on Workforce Development (State Board) has a certification methodology for
the JobLink system that includes standards and funding incentives from Title I (funding) for
Joblink Career Centers to build and expand their services to customers, and to expand
partnerships within their communities.
The Commission has established standards for local Workforce Development Boards scheduled
to take effect July 1, 2007. These standards include expectations for establishing stronger
alignments with business and industry, providing good labor market information to business and
industry, implementing regional collaborative strategies, effective and efficient use of resources,
and ensuring that the local JobLink system and its multiple agencies and programs are
providing services that are responsive to the needs of workers and employers.
North Carolina uses WIA Title I funds to leverage Trade Adjustment Assistance (TAA) and WIA
National Emergency Grant (NEG) funds to expand capacity and services to dislocated workers.
The State will continue to use WIA Title I statewide activities funds to provide incentives for
system expansion and improvement, to expand capacity to serve the business community, to
support demonstration projects and test service innovations, and to leverage other state and
local level funding for workforce development activities. This leveraging will include supporting
activities that include partnerships with faith-based, community-based, and non-profit
organizations. By the summer of 2007, the Commission will use WIA Title 1 statewide activities
funds to initiate competitive grant programs that will incent and support movement to regionally
based planning and resource utilization by local Workforce Boards, and to incent and support
the implementation of regionally based sector strategies that are responsive to the needs of
high growth occupations.
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North Carolina recognizes that transforming its workforce investment system at the state and
local levels to one that is demand-driven, cost efficient with limited duplication, and seamless for
workers and employers will require a state level governance, accountability, and management
structure that is clearly defined with a strong communication and operational alignment. In
Section I B, the State described the Governor’s establishment of the Workforce Alliance. The
Alliance will strengthen the State’s ability to implement policy and plans, to make decisions that
involve multiple agencies and programs, and to maximize the use of multiple funding sources to
impact workforce and economic development.
The State intends to build the alignment and communication between the State EDB, the
Commission on Workforce Development, and the Alliance in a way that promotes a common
understanding and vision for workforce and economic development in North Carolina. This state
level collaboration is expected to lead the effort in planning and implementing workforce
strategies that address North Carolina’s priorities and the national strategic priorities.
.
Employing a four-pronged approach, Governor Easley’s economic development policies
capitalize on the strengths of North Carolina’s economic base:
1. Targeting economic development and business retention efforts to companies in
industries with growth potential and that provide a good quality of life for North
Carolinians.
2. Providing tax and financial incentives to new and existing companies that provide good
wages and quality of life for North Carolinians.
3. Providing state-of-the-art public/private partnerships for training and knowledge transfer
for high-growth industry clusters.
4. Targeting additional resources to better serve North Carolinians who are most in need.
1. Target economic development and business retention efforts to companies in industries with
growth potential and that provide a good quality of life for North Carolinians.
The EDB serves as the State’s top economic development policy advisory board and is
responsible for recommending economic development policy to the Governor. North Carolina
has identified the following target industries:
Growth Industries
These are growth industries or industries that provide synergy to an industry cluster.
• Industrial Chemicals, Plastics and Rubbers,
• Transportation (including manufacturing of aircraft engines, boat building,
automotive components, aerospace),
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• IT/Telecommunications (including communications equipment, electronics,
semiconductors, and software),
• Industrial/electrical machinery,
• Life Sciences/Biotechnology/Pharmaceuticals,
• Military
• Financial and Business Services, and
• Health Care Services.
Maintenance Industries
These are industry sectors within declining industries that continue to show promise and
growth.
• Textiles/Apparel/Hosiery (for example, the manufacturing of non-wovens and
technical performance-based textiles),
• Forest Products/Agribusiness (for example, specialty crops and enhancement of
products, which would include recycling industries), and
• Furnishings (for example, higher-end furniture and other niches).
The High Point International Home Furnishings Market applied for and has
received the International Buyers Program designation by the U.S. Department of
Commerce. This designation means that the U.S. Department of Commerce will
assist in a worldwide recruiting effort to bring in more international buyers to the
2008 market.
• The Furniture IST has sent a survey to all furniture manufacturers seeking their
input on current trends and needs. This survey data will be compiled into a
database by Editors At Large in Winston-Salem. The PRSP staff of the
Department of Commerce will then analyze the data for policy recommendations
and potential growth opportunities.
Since the release of EDB’s Strategic Plan (Appendix 15), the Motorsports industry has been
added to the list of target industries. Additionally, the State Board of Science and Technology
(see below) has identified Nanotechnology (the ability to measure, see, and assemble objects
on the scale of atoms and molecules) as a priority for North Carolina’s research, development,
and commercial sectors. As materials science, a basic research and development technology,
and an advanced manufacturing discipline, nanotechnology will have significant impact on
virtually every commercial sector in the State. In the spring of 2005, the State Advisor for
Science and Technology, the Department of Commerce, and the North Carolina Board of
Science and Technology formed the Governor’s Task Force on Nanotechnology and North
Carolina’s Economy. Composed of twenty-eight members and broadly representing business,
academia, and the public sector from across the state, the Task Force’s charge was to:
Two approaches underlie that roadmap:
1. Strengthen North Carolina’s core economic development approach to advancing
technology-based economic development.
2. Strengthen the building blocks within that core approach that focus specifically on
nanotechnology.
Released in 2006, the roadmap is a call to action for North Carolina’s political and policy
leaders, industry, research institutions, educators, and the public to:
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• Increase our ability to innovate;
• Increase the levels of collaboration between our companies and R&D centers;
• Develop a well-educated and trained workforce;
• Provide a supportive public and political policy environment; and,
Diversify our technology cluster portfolio to include nanotechnology.
In 2006, additions were made to the 2004 Strategic Plan to focus on such growth opportunities
as entrepreneurship, a new State Port, military growth, and sustainable economic development.
• Entrepreneurship was identified by the NC Secretary of Commerce as a priority
item and a $5 million grant was given to the UNC System by the Kauffman
Foundation for Entrepreneurship education in the state over five years.
• The North Carolina State Ports Authority is planning a world class container
terminal to be completed over 8-10 years, the North Carolina International Port.
• North Carolina will take advantage of the anticipated relocation of two military
headquarters organizations and additional troops at Fort Bragg/Pope Air Force
Base. In 2005, the NC Military Business Center produced a Gap Analysis.
• In order to focus on Sustainable Economies and Sustainable Economic
Development, the NC Department of Commerce hosted a Sustainable Business
Forum in June 2006 and is working with the NC Sustainable Business Council.
With the passage of North Carolina’s 2006 budget, a bipartisan coalition of North Carolina
lawmakers established the One North Carolina Small Business Program. The program
broadens and realigns the existing One North Carolina Program to include aggressive and
comprehensive financial support for entrepreneurial growth companies within the state.
Lawmakers created the program in response to a realization that one of North Carolina’s
greatest economic development opportunities is in bridging the gap between its internationally
regarded innovation capacity and the creation of small businesses that can commercialize it.
The program recognizes the importance of entrepreneurial growth companies to the state’s
economy and places efforts to enhance them on equal footing with efforts focused on traditional
recruiting and expansion.
It does so by making North Carolina small businesses eligible for state matching grants to
support research projects funded under the federal Small Business Innovation Research (SBIR)
and the Small Business Technology Transfer (STTR) programs, which provide funding for small
businesses to commercialize their technologies. Since the program’s launch in January 2006,
the Board of Science and Technology has provided more than $3.5 million in matching awards
to 46 small businesses throughout North Carolina.
Industry Sector Teams are staffed and led by the Department of Commerce, and are comprised
of personnel from its various departments as well as from NCCCS, Universities, Regional
Partnerships, and local business representatives along with representatives from several other
organizations. The goal of these enterprise teams is to develop marketing strategies, to recruit
new companies to North Carolina, to support existing and entrepreneurial businesses, and to
create and maintain favorable business environments within the State’s cluster industries.
The Industry Sector SWAT Team, comprised of a small core team from across the NC
Department of Commerce, provides oversight and support to the Industry Sector Teams and
ensures the overall collaborative success of the initiative.
Additional agencies supporting research, development, and industrial sectors critical to the
future of North Carolina’s economy include the following:
• The North Carolina Board of Science and Technology, a Division of DOC - the mission
of the Board is to advise and make recommendations to the Governor, the General
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Assembly, the Secretary of DOC, and the EDB on the role of science and technology in
the economic growth and development of North Carolina. In pursuit of that mission, it
also encourages, promotes, and supports scientific, engineering, and industrial
research applications in North Carolina, investigates new areas of emerging science
and technology, and conducts studies on the competitiveness of state industry and
research institutions in these fields.
• The North Carolina Biotechnology Center - a private, non-profit corporation created by
the State in 1984 and supported by the General Assembly. The Biotechnology Center's
mission5 is to provide long-term economic and societal benefits to North Carolina
through support of biotechnology research, business and education statewide. A 65-
member staff works toward six goals:
• Strengthen North Carolina's academic and industrial research capabilities
• Foster North Carolina's biotechnology industrial development
• Enhance the teaching and workforce-training capabilities of North Carolina's
educational institutions
• Work with business, government and academia to move biotechnology from
research to commercialization in North Carolina
• Inform North Carolinians about the science, applications, benefits and issues of
biotechnology
• Establish North Carolina as a preeminent international location for the
biotechnology industry
2. Provide tax and financial incentives to new and existing companies that provide good wages
and quality of life for North Carolinians.
Credits for Growing Businesses (Article 3J Credits) Article 3J provides three types of tax
credits to eligible taxpayers that undertake qualifying activities in North Carolina: 1) Credit for
Creating Jobs, 2) Credit for Investing in Business Property, and 3) Credit for Investment in Real
Property (tier 1 only). These credits may be combined to offset up to 50% of the taxpayer’s state
income and franchise tax liability, and unused credits may be carried forward for up to five years
(15-year carry-forwards apply to the Credit for Investing in Real Property and 20-year carry-forwards
exist for taxpayers that invest at least $150 million over a two-year period). Credits
vary by geographic location with more distressed areas receiving higher credits.
Job Development Investment Grant Program (JDIG) is a discretionary incentive that provides
sustained, annual grants to new and expanding business measured against a percentage of
withholding taxes paid by new employees. The program is authorized to award from 10 percent
to 75 percent of withholdings for eligible positions. Grants awarded under the JDIG program can
result in payments to up to 25 businesses per year for up to 12 years per business. The total
amount awarded in a given year cannot exceed $15 million.
One North Carolina Fund is a flexible, discretionary tool that can be used in competitive
situations in which North Carolina must respond quickly to enable job creation and/or retention
within its borders. Its purpose is to attract and retain sustainable investments and jobs to North
Carolina communities, to stimulate state and local economies, and to provide resources to
enable communities to improve their economic development infrastructures, expand their tax
bases, and improve their general economic health and welfare.
North Carolina Economic Infrastructure Fund, created by the General Assembly in July
2004, is a $20 million initiative to stimulate business growth and job creation in rural and low-
Source: the Biotechnology Center's strategic plan, “New Jobs Across North Carolina: A Strategic Plan for Growing
the Economy Statewide through Biotechnology”, January 2004. Fifty-four strategies to facilitate growth in this critical
industry are addressed at the Center’s Web site,
http://www.ncbiotech.org/ncindustry/stragplan/strategicplan.cfm#stratplan.
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wealth communities. The funds are administered by the North Carolina Rural Center through
four programs designed to update water and sewer facilities, provide business and technology
assistance, renovate and restore buildings for new and expanding businesses, and invest in
major research and development projects with the potential to stimulate job growth in rural and
distressed areas.
Industrial Revenue Bonds & Composite Bonds provide low-interest capital for new and
existing manufacturers, with goals of sustaining and growing industrial employment in North
Carolina.
Community Development Block Grants are accessible to local governments to fund
infrastructure projects that will serve a business that commits to create quality jobs for low- and
moderate-income persons.
Industrial Development Fund (IDF) assists town, city or county governments with project
financing in the more distressed counties of the North Carolina. As an incentive for job creation
by new or expanding industry, local units of government utilized the IDF to provide infrastructure
improvements in the form of grants or loans for building renovation and equipment to companies
that commit to create quality jobs. The new tier structure under the Article 3J tax credit program
provides for a portion of the total JDIG grant made to a project located in a tier 2 or 3 county to
be payable to the Utility Account of the Industrial Development Fund pursuant to G.S. 143B-
437.61. Before 2007, 25 percent of the JDIG grant liability in tiers 4 and 5 were set aside into
the Utility Account of the Industrial Development Fund. Starting in 2007, 15 percent in a tier 2 is
put into the account and 25 percent for a tier 3. To date, the amount transferred to the Utility
Account of the Industrial Development Fund from JDIG totals $1.8 million. The amount to IDF
through the JDIG program will grow over time.
3. Provide state-of-the-art public/private partnerships for training and knowledge transfer for
high-growth industry clusters.
is the collaboration between
the National Aerospace Development Center (NADC) and strategic partners in the State of
North Carolina, academia, and private industry that make up the North Carolina Aerospace
Workforce Development Alliance (NCAWDA). The primary objective of the NCAWDA is to
promote the growth of the aerospace industry through targeted solutions that address issues
related to the industry’s changing workforce demographic. The North Carolina Aerospace
Initiative is an extension of the National Aerospace Workforce Solutions Initiative (NAWSI).
NAWSI was developed by NADC in response to the growing national aerospace workforce
crisis as identified by the President’s Commission on the Future of the U. S. Aerospace
Industry.
Regional Skills Alliances have proved to be an effective model for regional economic
development strategic planning, in which employers within key sectors, public agencies, and
schools share information and leverage resources to train workers for region-wide needs and
opportunities. The goal of these alliances is to promote collaboration and coordinated strategic
planning for economic development, community development, and workforce development
among the many agencies involved in those activities.
University Technology Transfer Development Initiative (TDI) is a UNC system initiative
created with funding from the National Science Foundation (NSF). The goal of TDI is to examine
and increase capabilities and resources that support technology transfer at the 16 UNC
institutions. The study and recommendations are available at
http://intranet.northcarolina.edu/docs/aa/research/initiatives/TDI_Interim_report_June_03.pdf.
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The Millennial Campus Act makes it possible for any UNC system institution to develop
facilities that promote university/government/industry partnership through physical proximity of
participating organizations and through programs designed to foster collaboration between the
three sectors. Millennial Campuses capitalize on the State’s considerable research strengths in
areas such as biotechnology, education, information sciences, and microelectronics. A major
goal of this program is to encourage the formation of start-ups by promoting synergies resulting
from collaboration of research and development efforts at local universities and local
entrepreneurs.
North Carolina Motorsports Testing and Research Complex, a proposed research complex
to be housed at UNC-Charlotte, is planned to strengthen and expand the productive industry
clusters already present in North Carolina in motorsports, high-end automotive parts
manufacturing, and the military. This proposed research complex would facilitate growth by
building synergies and promoting technology transfer amongst these clusters.
is a public/private
enterprise that is developing a 630-acre site specifically for research and development testing of
new automotive and transportation technologies. This will include a 2.5 mile development track
built to accommodate automotive and truck testing needs (and be funded through donations),
garages and office space needed by client users, and a wide range of shared testing labs with
specialized facilities for the testing of alternative fuel technologies, including bio-diesel,
hydrogen, and fuel cell labs. Facilities at the Center will be available on a lease basis based on
client needs. The groundbreaking was in April 2006. The state provided start-up funding in
2006-07 of approximately $7.5 million and currently proposals are for approximately $11.5
million for capital improvements and $3 million for operating expenses through fiscal 2008-09.
The NC Department of Commerce is working with NCSU’s College
of Textiles (COT) in order to increase the competitiveness of the textile industry through
knowledge transfer and training as part of two initiatives. The first is developing an industry
data warehouse and related collaboration website. The textile, apparel, and hosiery industry
would be able to connect for training and knowledge transfer in order to increase the
competitiveness of the industry. In addition, the COT would hold educational seminars for the
industry. The second is research on developing the technical textile performance sector of the
industry. Industry focus groups would be used to determine the needs of this competitive and
growing industry sector in North Carolina and ways to become the leading location for this
sector. The strategy is to grow the dynamic portions of the textile complex and move dislocated
textile workers to this sector.
4. Target additional resources to better serve North Carolinians who are most in need.
Target resources and services to workers who need transition assistance so that they may be
prepared for and benefit from North Carolina’s changing economy and job opportunities. This
targeting of resources and services will require the following:
• Expansion of incumbent worker training opportunities for businesses and their
employees to increase worker productivity and to avert worker dislocations.
• A comprehensive strategy for dislocated worker transition assistance to training,
support services, and reemployment.
• Targeting services and resources to new and existing worker pools that may require
special education, training, and support services. These worker pools include
disadvantaged youth (including youth dropouts), the (increasing) immigrant population,
new labor market entrants, and low-wage workers.
North Carolina has joined with the National Governor’s Association in their Policy Academy on
Sector Strategies. The state applied in 2006 and was accepted. The initial sector chosen was
Allied Health. Plans are to continue with Allied Health and to develop the workforce strategy for
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other growth sectors in the state. The goal is to enable regional workforce intermediaries to
meet the growing need for a skilled workforce within the sector by integrating workforce and
economic development strategies.
As described by the sector strategy vision: North Carolina is committed to the development of
sector strategies that include substantial employer engagement, deep community connections,
career advancement opportunities, integrated service delivery and support, industry driven
education and training, and connected, regionally based networks. This common workforce
development agenda will support flexibility, innovation, and effective use of resources and
services.
The 24 local WDBs in North Carolina are the primary workforce intermediaries for developing
and sustaining partnerships and collaborations that define workforce needs and gaps in local
communities. The Commission on Workforce Development expects each local board to be a
“convener” of workforce development stakeholders to address, on a continual basis, workforce
and economic issues. North Carolina recognizes, however, the need to build local WDB
capacity to meet the expectations that the State, in particular the Commission, believes local
boards should have.
Specifically, the State will work with local WDBs and local officials to strengthen the boards’
abilities to promote and sustain partnerships that accomplish the following:
• Organize multiple public and private partners and funding sources around common
goals;
• Understand the special needs of business and industry and influence the development
of services and programs in response to those needs; and
• Promote innovation in finding solutions to workforce issues.
Section 1.D describes the Commission’s focus and activities in regard to building local
workforce development board capacity.
The State will also continue to support strategies that meet the worker recruitment and retention
needs of key industry sectors within North Carolina. Title I WIA funds have been used to support
the development of regional skills alliances in two of the 24 local workforce areas. These
alliances, at the regional level, include employers within key sectors, public agencies, and
education and training institutions who share information and leverage resources to train
workers for region-wide needs and opportunities.
North Carolina looks for opportunities to target existing state and federal resources to support
workforce needs in high-growth industries and high-demand occupations. WIA statewide
activities funds are used to leverage and support community college-based training programs in
high-growth or high-demand occupations. This funding stream is also used to leverage federal
and state grants received by North Carolina workforce entities at both state and local levels that
target training in growth industries, demand occupations, and targeted labor pools. Training in
high-growth/high-demand occupations through the Incumbent Workforce Development Training
Program is supported. This program, funded with WIA statewide activities resources, also
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complements the state-funded, community college-based NEIT program by providing training
assistance to existing industries that do not qualify for NEIT training assistance.
The State is also using system resources to build the capacity of business services at the local
level. Special grants are provided to local WDBs so they can fund demonstration projects that
build local board capacity, develop partnerships with key business sectors, and strengthen their
understanding of local labor markets and business needs. North Carolina’s system resources
will continue to target and support innovations that are responsive to business and community
needs.
The State has used WIA funding to support local workforce development boards capacity to
establish business services staff positions that work with the board and the JobLink service
delivery system to ensure that appropriate relationships and connections are made with the
business and economic development community.
Section 1.D describes the states plans for supporting the implementation of regional sector
strategies in North Carolina that will target training and related resources to industry sectors with
potential for sustainable growth.
North Carolina is a state dominated by small businesses. Services and benefits provided for
education, employment, and training in the workforce development system are designed from a
“small-business-as-customer” perspective. The JobLink Career Center system is designed to
meet the human resource needs of small business. This design is based on the premise that
small businesses have fewer resources for human resources and development than larger
businesses have. Because surveys and focus groups have determined that small businesses
are not aware of services available through the JobLink network, the State’s focus is on
marketing the North Carolina JobLink Career System on a statewide level.
All of the 58 community colleges in North Carolina have small business centers that support
existing small businesses with services and information, and also provide small business
development training for entrepreneurs needing assistance in starting small businesses. The
State has provided grants to the community college system to support curriculum development
for small business training, and also to support a special collaboration to train dislocated
workers in small business development within the small business centers.
The Business ServiCenter is a business service call center within DOC that quickly and
efficiently guides small and medium businesses to appropriate business services, including
workforce recruitment, training services, and retention resources and services. Industry
specialists guide businesses to existing programs and resources that may lead to improved
worker productivity and company profitability.
The New Opportunities for Workers (NOW) program is a collaborative initiative between the
State Board, the North Carolina Rural Center, NCCCS, and NC REAL Enterprises. This
program provides entrepreneurship/small business development training to dislocated workers
who have the appropriate level of serious interest in starting a business as their personal
strategy for reemployment and self-sufficiency. The North Carolina Rural Center has also
spearheaded the organization of the North Carolina Business Resource Alliance, which is a
coalition of organizations that support small business. Through the Rural Center and the
Business Resource Alliance, an entrepreneurship education and training directory has been
produced and is available to JobLink Centers and other workforce development entities
throughout North Carolina.
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The UNC system has 17 Small Business and Technology Development Centers across North
Carolina. Each of these centers is affiliated with a university, and each helps small businesses
or those interested in starting a small business. Services include management counseling
(operations, planning, and human resources) and educational services, business research, and
technology commercialization.
The majority of the grants to North Carolina businesses for training existing workers in the
Incumbent Workforce Development Training Program and in the NEIT program are awarded to
small and medium size businesses.
Statewide activities funds are used specifically to support workforce development activities that
complement the Governor’s vision and the strategic focus of the Commission on Workforce
Development, both of which are closely aligned with the national strategic direction. Statewide
activities funds are used in a number of ways:
• To support competitive grant programs to local workforce areas for incumbent worker
customized training for companies in high-growth/high-demand industries.
• To support funding for special projects at the local level for the development of regional
skills alliances and other projects that strengthens the connection between the
workforce system and business and industry.
• To support the community college system in areas of system capacity to meet the
needs of business, to meet the needs of targeted labor pools, and to support
innovations that lead to improvements in curriculum and training approaches for future
skill needs of business and industry.
• To incent the JobLink Career Center system to achieve enhanced levels of service
integration and partnership building through the JobLink Chartering process (North
Carolina’s One-Stop certification methodology).
• To support projects that connect the services of community-based and non-profit
entities in local communities with the services and benefits provided by partners within
the JobLink network.
• To fund grants to local workforce areas to support innovative approaches to serving
youth.
• To support the development of new computer based tools and resources within the
Labor Market Information Division (LMID) and DOC that provide new and expanded
labor market and economic information to state level partners, local boards, and local
JobLink service delivery staff.
Involvement and continued support for strategies by several agencies and organizations
provide solid foundation point for this work. Examples of these strategies include the
following:
• Increase apprenticeship opportunities to dropout youth;
• Allow youth to enter a formal apprenticeship while pursuing a GED rather than
requiring a high school diploma prior to enrollment;
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• Require 240 hours of paid work experience as a graduation requirement for those
youth pursuing the Occupational Course of Study, often a factor of keeping youth
engaged in school;
• Provide enhanced services to long-term foster youth. Challenge for Children is a
strategy of DHHS that makes the reduction of foster care backlogs a top social services
priority. This strategy focuses on children who are long-term in the system and are
starting to “age out”.
• Provide quality and free child care to children of young teen parents, who themselves
are often school dropouts; and
• Improve behavior of troubled youth by providing residential wilderness camp
experiences.
• Continue regularly scheduled state and local area workforce partners meetings across
the state to include but not limited to 24 local workforce area directors and state
agency representatives from Vocational Rehabilitation, Community Colleges,
Employment Security, Public Instruction, Rural Center, Corrections, and Juvenile
Justice. Agency representatives were pulled together to plan the calendar year
meetings and are asked for input throughout the year as each agenda is set prior to
the next meeting.
• Continue annual workforce partners’ conference held each Fall to include all
partnering agencies and tracks that represent emerging issues and trends.
• Contribute to a Youth Summit to be planned by local workforce area Youth Leads for
youth customers.
Additional strategies include the following:
Juvenile Justice - Strategies include these specific programs:
• Juvenile Crime Prevention Councils – operate in all counties and are charged with the
development of strategies to intervene, respond to and treat the needs of juveniles at
risk of delinquency. Juvenile Crime Prevention Council members work to fund these
types of services and programs in their local communities: Counseling, Home-based
family services, Treatment centers, Psychological services, Residential group homes,
Restitution, Specialized foster care, Shelter care, and Guided growth programs.
• Support our Students - prevention program that addresses the predictors of dropping
out: lack of a caring adult, grade retention due to academic performance, and school
attendance.
• Eckerd Youth Alternatives - a residential wilderness camp for youth ages 10-17 who
have behavioral problems. Since poor behavior is a predictor of dropping out and youth
will exit the program just prior to the legal, allowable age for dropping out, this strategy
for helping youth transition out of the last year of the program has potential for dropouts.
• The Center for the Prevention of School Violence has been a part of the North Carolina
Department of Juvenile Justice and Delinquency Prevention (DJJDP - Center) since
2000. The DJJDP - Center serves as a resource center and "think tank" for efforts that
are directed at guiding all youth toward becoming productive members of their schools
and communities. The Center provides information and technical assistance to those
who are motivated to help young people positively develop in environments that are as
safe as possible.
North Carolina State Occupational Information Coordinating Committee (NC SOICC) – one
strategy to promote cross-agency collaboration is to enhance youth access to and utilization of
NC SOICC career resources for youth. Building on NC SOICC’s unique history of interagency
product creation and training, State employees who work with youth will continue to participate
in NC SOICC’s professional training opportunities and to facilitate ongoing development of
North Carolina-specific resources that link academic and career planning for youth.
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College Foundation of North Carolina is a nonprofit partnership between Pathways of North
Carolina, College Foundation, Inc., and the North Carolina State Education Assistance
Authority. These organizations have broad expertise in helping students to prepare successfully
for college and to find the best financial aid alternatives. Together, they provide a complete and
comprehensive source of information - and real solutions - for students and their families.
• GEAR UP, Gaining Early Awareness and